Altcoin miners are abandoning mining due to low fees

Mining fees for many of the top altcoins are at dangerously low levels. Data shows that in the past 24 hours, miners who operate computer systems and maintain different altcoin networks have generated a total income of only a few hundred dollars or less.

Twitter user WhiteRabbit (@WhiteRabbitBTC) highlighted this information in his tweet. The results show that in the past 24 hours, miners of Bitcoin SV (BSV), Litecoin (LTC), Bitcoin Cash (BCH) and XRP have received fees below $500.

BCH and BSV are altcoins with particularly low transaction fees

The fees earned by BCH and BSV miners were particularly low, at only $103.91 and $79.94 respectively. Twitter user WhiteRabbit asked in his tweet: "When are BCH/LTC/BSV miners going to shut down their equipment?"

Of course, mining fees don’t tell the whole story. BCH, BSV, and Litecoin miners, in addition to receiving fees added to each transaction in a block, also receive block rewards for new blocks. While these revenues do offset low fees at the moment, these networks will also be set up to systematically reduce the block rewards for new blocks, which is known as the “halving event.”

One respondent to the above-mentioned Twitter user WhiteRabbit’s tweet commented that there is already evidence of such a miner exodus on the Litecoin network. Since the Litecoin halving event earlier this summer, the network’s mining difficulty and hash rate have both declined. From 480 TH/s at the beginning of August, the hash rate is currently down to just 252.5 TH/s. As fees cannot compensate for the sudden drop in miner income, there is evidence that many miners have left the network.

The cost of electricity is high

Twitter user WhiteRabbit added that using the popular Antminer L3++ to mine Litecoin requires electricity prices below $0.0232 per kilowatt-hour. According to data from GlobalPetrolPrices.com, using the Antminer L3++ to mine Litecoin is unprofitable anywhere except in Myanmar.

Meanwhile, using WhatToMine.com’s mining calculator, BSV mining stops being profitable when electricity prices rise above 11 cents per kilowatt-hour, when mining using cutting-edge hardware with a hashrate of 57 TH/s.

While this would make cryptocurrency mining more profitable in more countries around the world, the calculator does not take into account the cost of any of the hardware itself, the cost of land ownership, or the cost of any cooling facilities that might be required to run high-powered systems day and night. Clearly, $80 in fee revenue, spread across the network, would do little to offset these necessary expenses.

This article is from "BlockBeats", translated from: https://beincrypto.com/altcoin-miners-are-leaving-networks-due-to-low-fees/

Link: https://www.xcong.com/articles/3574749

Source: Xiaocong APP

Copyright belongs to the author. For commercial reprint, please contact WeChat (ID:xiaocongjie1) for authorization. For non-commercial reprint, please indicate the source.